It’s getting better all the time

Kelli Rodda
Guest editor

As I reviewed this year’s State of the Industry data, I heard that particular ditty by The Beatles running through my head. It’s true – it is getting better. Don’t jump on that soapbox just yet about healthcare laws, labor problems and government shutdowns. I didn’t say everything is getting better. But in the microcosm of the green industry, things are improving.

This year, the majority of growers revealed that sales are up. All of the “ups” totaled 59 percent compared with 21 percent of those who said sales were down. Some 20 percent of respondents said sales were flat.

There was some good news for profits, too. Some 52 percent said profits were up during the past year, compared with 20 percent who said profits were down. However, 13 percent revealed “I’m not sure” when asked “What is your profit margin?” If you fall into this category, make it your priority to know that answer. And don’t be afraid to ask for help. Turn to page 32 where Charlie Hall, Ellison Chair in International Floriculture at Texas A&M, helps growers sort out cost accounting.

Most of those surveyed thought “offering a better product mix” is the best way to retain or improve profit margins. I was happy to see “price increases” come in behind at the No. 2 spot. It’s no secret that expenses are up, so why not consider price increases?

Better attitude
This marks our third year collecting and sharing the SOI data. That first year was an ugly time for this industry and the economy. Those surveyed in 2011 painted a dismal picture of their expectations for the market – 47 percent said they weren’t confident at all that the market for greenhouse products would grow in 2012. That answer dropped to 35 percent the following year. And only 24 percent of this year’s respondents have no confidence in the 2014 market. It could be argued that fewer pessimists participated in the survey, but I believe it’s because of an improvement in attitude and business practices. And conversations with growers across the country this year supports my belief.

Keep celebrating the victories, even the small ones. I have to admit, it’s getting better. It’s getting better all the time.